Discounted Cash Flow (DCF) Analysis Unlevered
Scholastic Corporation (SCHL)
$43.87
+0.60 (+1.39%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,628.40 | 1,653.90 | 1,487.10 | 1,300.30 | 1,642.90 | 1,664.53 | 1,686.45 | 1,708.66 | 1,731.16 | 1,753.95 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 66.50 | 109.90 | 3.40 | 78.20 | 157.40 | 88.39 | 89.56 | 90.74 | 91.93 | 93.14 |
| EBITDA (%) | ||||||||||
| EBIT | 0.50 | 28.20 | -86.80 | -12.10 | 92.50 | 1.99 | 2.02 | 2.05 | 2.07 | 2.10 |
| EBIT (%) | ||||||||||
| Depreciation | 66 | 81.70 | 90.20 | 90.30 | 64.90 | 86.40 | 87.54 | 88.69 | 89.86 | 91.04 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 391.90 | 334.10 | 393.80 | 366.50 | 316.60 | 393.51 | 398.69 | 403.94 | 409.26 | 414.65 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 204.90 | 250.10 | 329.80 | 344.90 | 326.20 | 320.46 | 324.68 | 328.96 | 333.29 | 337.68 |
| Account Receivables (%) | ||||||||||
| Inventories | 294.90 | 323.70 | 270.60 | 269.70 | 281.40 | 312.09 | 316.20 | 320.37 | 324.58 | 328.86 |
| Inventories (%) | ||||||||||
| Accounts Payable | 198.90 | 195.30 | 153.60 | 138 | 162.30 | 182.58 | 184.98 | 187.42 | 189.89 | 192.39 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -121.50 | -95 | -66 | -47.20 | -42 | -79.33 | -80.38 | -81.43 | -82.51 | -83.59 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 43.87 |
|---|---|
| Beta | 1.105 |
| Diluted Shares Outstanding | 35.56 |
| Cost of Debt | |
| Tax Rate | 9.81 |
| After-tax Cost of Debt | 2.70% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.904 |
| Total Debt | 97.10 |
| Total Equity | 1,560.19 |
| Total Capital | 1,657.29 |
| Debt Weighting | 5.86 |
| Equity Weighting | 94.14 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,628.40 | 1,653.90 | 1,487.10 | 1,300.30 | 1,642.90 | 1,664.53 | 1,686.45 | 1,708.66 | 1,731.16 | 1,753.95 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 66.50 | 109.90 | 3.40 | 78.20 | 157.40 | 88.39 | 89.56 | 90.74 | 91.93 | 93.14 |
| EBIT | 0.50 | 28.20 | -86.80 | -12.10 | 92.50 | 1.99 | 2.02 | 2.05 | 2.07 | 2.10 |
| Tax Rate | -233.33% | 40.00% | 51.17% | 39.56% | 9.81% | -18.56% | -18.56% | -18.56% | -18.56% | -18.56% |
| EBIAT | 1.67 | 16.92 | -42.38 | -7.31 | 83.43 | 2.36 | 2.39 | 2.43 | 2.46 | 2.49 |
| Depreciation | 66 | 81.70 | 90.20 | 90.30 | 64.90 | 86.40 | 87.54 | 88.69 | 89.86 | 91.04 |
| Accounts Receivable | - | -45.20 | -79.70 | -15.10 | 18.70 | 5.74 | -4.22 | -4.28 | -4.33 | -4.39 |
| Inventories | - | -28.80 | 53.10 | 0.90 | -11.70 | -30.69 | -4.11 | -4.16 | -4.22 | -4.27 |
| Accounts Payable | - | -3.60 | -41.70 | -15.60 | 24.30 | 20.28 | 2.40 | 2.44 | 2.47 | 2.50 |
| Capital Expenditure | -121.50 | -95 | -66 | -47.20 | -42 | -79.33 | -80.38 | -81.43 | -82.51 | -83.59 |
| UFCF | -53.83 | -73.98 | -86.48 | 5.99 | 137.63 | 4.75 | 3.63 | 3.68 | 3.73 | 3.78 |
| WACC | ||||||||||
| PV UFCF | 4.38 | 3.08 | 2.88 | 2.69 | 2.51 | |||||
| SUM PV UFCF | 15.53 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.54 |
| Free cash flow (t + 1) | 3.85 |
| Terminal Value | 58.89 |
| Present Value of Terminal Value | 39.09 |
Intrinsic Value
| Enterprise Value | 54.62 |
|---|---|
| Net Debt | -219.50 |
| Equity Value | 274.12 |
| Shares Outstanding | 35.56 |
| Equity Value Per Share | 7.71 |